counter trend trading emini futures

Seldom will big moves be captured using a counter trend method since it goes against the current trend. This method is marginal at best and is based more on luck rather than technical analysis especially in a strongly trending market. If an Emini futures market is moving upward, the trader will execute a trade on a percentage basis above the prior signal and sell short to profit on small pull backs before the market resumes the prevailing upward trend. Most traders that have spent serious time in the financial markets have all heard the phrase, "the trend is your friend until it ends". I whole heartedly agree this is prudent Emini Day Trading advice. Emini futures trading is both adventuresome and profitable for traders willing to take the time to study and understand the index futures market. Success in trading Emini Futures comes more from learning patience and discipline than the actual strategy, be it Trend Following or the Counter Trend strategy we are addressing here.

Scalp traders in the Emini Futures market are the most likely trader to use counter trend methods since they are primarily looking for only a few points or ticks on each trade. Emini futures trading utilizing contrarian methods is best implemented in a trading method where many small gains are the name of the game. This method of counter trend trading Emini Futures should only be reserved for veteran traders that have spent a great deal of time learning to first follow the trend. Other traders will use oscillators to time their trades, only initiating trades in severely over-bought or over-sold conditions, betting the market will reverse in an effort to catch it's breath after a big rally or sell-off. Using this method in a range bound and sideways market will yield better results. However, there are people that pursue Emini Futures Trading with a contrarian view on the markets and utilize counter trend methods, opposed to the crowd. It's called the "I'm the smartest guy in the room" trade, and picking tops and bottoms can be likened to catching a falling knife. Learn your strenght and only trade in that direction.

Emini traders utilizing counter trend methods will fade small moves above the last trend continuation signal. This works extremely well for the uber-talented Emini Futures trader. This puts the not so talented trader out of business rather quickly.

In the reverse, the trader will execute buy orders on small rallies based on a percentage move below the prior sell signal. Other traders will use market timing in conjunction with "contrary opinion" to time their entry and exit points.It should be understood, while day trading Emini Futures counter trend trading can be profitable, it is risky, and should only be implemented once a trader has a thorough grasp on market dynamics.

If you find yourself being stopped out to the tick repeatedly as you attempt to "follow the trend", perhaps you have a natural ability to spot the counter trend and you should trade into your strength and not your weakness. Take a free trial on our real time Emini Demo Platform and practice counter trend trading for 2 weeks with no risk. Maybe you are a natural and just don't know it. 

Find out today.

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[Derivative Market Trading]

A futures industry without trading in foreign currencies and other financial futures is difficult to imagine today.